Hycroft Mining Holding Corporation · NASDAQ:HYMC
Hycroft Mining — Investor Presentation (April 2021)
28 slides from Hycroft Mining's investor presentation, Apr 22, 2021
Slide 1: Building a World-Class Operation
BUILDING A WORLD-CLASS OPERATION NASDAQ: HYMC ALIGNED TEAM DISCIPLINED DEVELOPMENT SHAREHOLDER FOCUS April 20, 2021
Slide 2: Disclaimer
2 Disclaimer Financial Projections This presentation contains financial forecasts regarding certain financial metrics of the Company. The independent auditor of the Company has not audited, reviewed, compiled, or performed any procedures with respect to the projections for the purpose of their inclu
Slide 3: Hycroft Overview
3 Hycroft Overview Source: Company Filings 1. AuEq calculated using an Au:Ag ratio of 75:1; Resources include Measured, Indicated and Inferred Resources. 2. See “Cautionary Note to US Investors Regarding Reserves and Resources.” 3. Mineral resources do not include mineral reserves. Strong Project Fu
Slide 4: New Leadership & Technical Teams
4 New Leadership & Technical Teams • New highly experienced management team in place, led by: • New on-site technical team in place, including: • Mike Eiselein – VP and General Manager (former Newmont, Barrick) • James Berry – VP Exploration and Geology (former Romarco Minerals, Barrick) • Kenji Ume
Slide 5: 2020 Achievements
5 2020 Achievements Completed Recapitalization Transaction May 29, 2020 and became a publicly traded company on the NASDAQ Capital Markets Exchange Completed crusher rehabilitation and achieved steady state crushing operations New Executive Management Team (CEO, CFO and COO) – Q3/20 Increased year-o
Slide 6: Hycroft Mine Overview
6 Hycroft Mine Overview • Fully constructed mine and processing facilities • Crusher commissioning completed • Full operating and maintenance program in place • Health & Safety team embedded in each group • 3-5 year run-of-mine plan in development intended to maximize cash flow during ramp-up • Fina
Slide 7: One of the World's Largest Gold Deposits
7 One of the World’s Largest Gold Deposits • 34-year mine life provides strong leverage to gold and silver prices • Potential resource conversion provides additional production upside and mine life extension • Substantial scale will appeal to senior producers once project has demonstrated economics
Slide 8: Mining
8 Mining • Currently operating mining fleet with combination of owned and rental equipment • 24-hour mining operations • Active in-pit drill and blast
Slide 9: Crushing and Processing Infrastructure
9 • The primary crusher was reconditioned and brought into operation in late March 2019 • The secondary and tertiary crushers were recommissioned and placed online in March 2019 • Crusher will be maintained and ready for when sulfide processing begins Coarse Ore Stockpile Fine Ore Stockpile Fine Ore
Slide 10: Processing Infrastructure cont.
10 Processing Infrastructure cont. • Gold and silver recovery is currently achieved through the 5,000 gallon per minute Brimstone Merrill-Crowe plant • CIC circuit (~4,500 gpm capacity) available as extra solution processing capacity as needed • Doré created onsite through Brimstone refinery • 21,50
Slide 11: 2020: Key Findings of Novel Process
11 2020: Key Findings of Novel Process FINDING SOLUTION IN PROGRESS Forced air injection Forced air injection system is a key component of the leach pad for effective oxygen distribution throughout pad Working with third-party engineering firm to design and integrate system into the flowsheet and le
Slide 12: 2021 Outlook
12 2021 Outlook • Focus on cost reduction and improving operating efficiencies • Reducing higher cost contract fleet • Continue to advance two-stage sulfide heap oxidation and leach process • Sulfide material is being mined and stockpiled and is available for processing using the two-stage oxidation
Slide 13: 2021: Milestones
13 2021: Milestones Late Q1 Began drilling for metallurgical samples and variability testing Q2 Transition to a more cost- effective mining fleet arrangement Early Q2 994K loader in operation, expected to improve loading capability and reduce unit mining costs Early Q3 Develop 3-5 year run- of-mine
Slide 14: Leach Pad & Projects
14 Sufficient capacity on existing leach pads to treat run-of-mine ore using traditional heap leach New Leach Pad • New fully permitted leach pad constructed (Stage 1A) • Intended for two-stage heap oxidation and leach process • Stage 1 – 8.6 M square feet; 26.5 M ton capacity • Ultimate pad capacit
Slide 15: Growth Opportunities
15 Growth Opportunities Source: Hycroft Mining Management • Large, unexplored land position • Additional exploration targets on land held by Hycroft outside existing plan of operations • Known mineralization proximal to existing facilities • Near surface oxide leach targets and expansion potential f
Slide 16: Valuation vs Peers
16 Source: Source: BMO GoldPages for the week ended April 5, 2021 Note: Median excludes Hycroft P/NPV – Share price at 4-6-21 divided by net asset value Low P / NPV multiple represents early opportunity to participate in potential rerating as development continues Valuation vs Peers Gold Sector Valu
Slide 17: Capital Structure and Ownership Summary
17 Capital Structure(1)Ownership Summary (1)(2) Mudrick 25.2 mm 42% Whitebox 12.0 mm 20% Highbridge 6.9 mm 12% Sprott Resource Lending Corp. 0.5 mm 1% Other 15.3 mm 25% Capitalization and Major Supporters Share Price $3.47 Shares Outstanding 59.9 mm Market Capitalization $208 mm Public Warrants (exe
Slide 18: One of the World's Largest Precious Metals Deposits
18 One of the World’s Largest Precious Metals Deposits Mineral reserves - 11.9 mm ozs gold / 478.5 mm ozs silver(1) Mineral resources – 9.5 mm ozs gold / 238.7 mm ozs silver (exclusive of reserves)(1,2) Flexible processing options Strong Board, Management and Technical Team with Proven Track Record
Slide 19: Board of Directors
19 Board of Directors David Kirsch Chairman, C, NG David Kirsch is a Managing Director and Senior Analyst at Mudrick Capital Management, L.P., where he is responsible for analyzing distressed credit and equity opportunities across a diverse range of industries. Prior to joining Mudrick Capital Manag
Slide 20: Board of Directors cont.
20 Board of Directors cont. Stephen Lang1 Director Nominee Steve Lang has over 40 years of experience in the mining industry, including engineering, development and production at gold, coal, base metals and PGM operations. He was Chief Executive Officer of Centerra Gold Inc., a publicly traded minin
Slide 21: Appendix
APPENDIX
Slide 22: Hycroft History
22 Hycroft History • The earliest recorded mining in the Hycroft area began in the 1800s following the discovery of native sulfur deposits • Mining of native sulfur was sporadic from 1900-1950 • High-grade silver mined at Camel Hill (nka Silver Camel) 1908-1912 ~165,375 ozs produced • Alunite was al
Slide 23: Cautionary Note to U.S. Investors Regarding Reserves and Resources
23 Cautionary Note to U.S. Investors Regarding Reserves and Resources The Mineral Resource and Mineral Reserve estimates contained in this presentation have been prepared in accordance with the r equirements of the Modernization of Property Disclosures for Mining Registrants (the “New Mining Rules”)
Slide 24: Mineral Reserves and Resources
24 Mineral Reserves and Resources Tons Grades (oz/t) Contained Ounces (000s) (Mt) Au Ag Au Ag Au Eq(1) Total Proven & Probable Reserves 1,123 0.011 0.426 11,865 478,513 18,445 Measured & Indicated 387 0.009 0.277 3,589 106,389 5,152 Inferred 599 0.010 0.217 5,688 127,949 7,499 Total Resources(2) 993
Slide 25: Senior-Scale Gold Mine in Nevada
25 Senior-Scale Gold Mine in Nevada Source: July 31, 2019 Summary Technical Report 4 1 0 0 0 N A u F a B lo c k G ra d e s ( L o o k in g N o rt h ) 4 1 0 0 0 N A g F a B lo c k G ra d e s ( L o o k in g N o rt h )
Slide 26: Geologic Setting and Mineralization
26 Geologic Setting and Mineralization • The Hycroft mine is located on the western flank of the Kamma Mountains • Large, epithermal, low sulfidation, hot springs deposit • Gold and silver mineralization occurs as both disseminated and vein-controlled Simplified East-West Cross Section Through the H
Slide 27: Drilling History
27 Drilling History • Exploration drilling started in 1975 • 5,520* drill holes within model footprint, representing 2,446,162 feet of drilling • Strong knowledge of the ore body through extensive drilling campaigns, individual assays and over 260 million tons of ore mined to date • 86% of holes dri
Slide 28: Permitting
28 Permitting • Received Record of Decision from Bureau of Land Management for EIS (10-22-19) • Current operating plan is fully permitted • Existing operating permits will be amended as new facilities/infrastructure are required • EIS allow for flexibility: • Expanded pits • Construction of a tailin
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